§ 24. Sir NICHOLAS GRATTAN-DOYLEasked the Chancellor of the Exchequer whether he is aware of the obligation of His Majesty's Government to British subjects who invested in the London Tranche of the German 5½ per cent. Young Loan on the understanding that the proceeds would be received by the British Exchequer; will he make a formal request to the German Government to honour its pledge to pay interest and sinking fund or, alternatively, will he arrange for the British Exchequer to assume responsibility for the interest and sinking fund, in accordance with the flotation terms of the London issue of the loan?
§ Mr. HORE-BELISHAThe German Government International 5½ Per Cent. Loan, 1930, is an unconditional liability of the German Government and His Majesty's Government have no financial liability for it. The question whether any formal representations should be made to the German Government on the matter will require to be considered when the intentions of the German authorities have been further elucidated.
§ Sir A. M. SAMUELDoes my hon. Friend say that the Government are under no moral obligations in the matter? Has he forgotten that the late Chancellor of the Exchequer, Mr. Snowden as he then was, told the House that the whole of this money was going to the British Exchequer and issued a White Paper to that effect?
§ Mr. HORE-BELISHAThat is quite a different matter. That refers to the proceeds of the loans. The question refers to interest.
§ Sir A. M. SAMUELThe question refers to the obligation of the Government?
§ Mr. HORE-BELISHAI answered that by saying the Treasury has no obligation?